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Well, here we are. 2026 has arrived, and chances are you’ve overindulged—not just in food and drink, but in consuming endless “expert” predictions about the year ahead.

If you’ve been paying attention, you’ve probably noticed that nearly every forecast has one thing in common: AI. Honestly, if this were truly a “2026 predictions” article, I could just write the letters A and I a thousand times in different fonts and call it a day.

But this isn’t about predictions. It’s about surviving the gap between AI hype and AI reality.

AI is maturing—in good ways and bad

The AI market is undeniably evolving, and that maturity shows up in two critical ways:

On the positive side:
AI capabilities are improving rapidly. MSPs need to keep pace—not only understanding these advancements but leveraging them to deliver meaningful value to customers.

On the negative side:
User experience with AI is also maturing, and that has resulted in something else: AI fatigue.

People are realizing that AI isn’t the flawless oracle they hoped for. It gets things wrong—sometimes spectacularly wrong. We’re reaching the point in AI’s lifecycle where expectations and reality no longer match, and the shine of AI hype is wearing thin.

It’s unlikely we’ve hit bottom yet. 2026 is poised to be the year when users start pushing back, loudly, demanding more reliable AI and holding providers accountable. As the dust settles, the latter half of 2026 into 2027 should bring more alignment between what AI can do and what users expect.

A helpful lesson from the classroom

I recently came across a story about a teacher who realized fighting students’ use of AI was pointless. So she took a different approach: she required them to use AI.

Students picked a topic, generated a short report using the AI tool of their choice, and then had to identify all the errors and correct them—citing sources. It was difficult, but they walked away with a far deeper understanding of AI’s limitations and the importance of verification.

This is equally true for MSPs and their customers. In 2026, trust and verifiable value in AI services will be essential.

AI must actually do something

AI for AI’s sake has no value. For MSPs, the mission in 2026 is clear: offer AI-driven services with defined outputs that help customers achieve real business outcomes.

Simply providing access to an AI engine isn’t enough anymore. Customers will invest in AI when it directly improves productivity, efficiency, and results—and when the benefits are visible and measurable.

And let’s be honest: far too many vendors slap “AI” on anything.

  • Data analysis? AI.
  • Machine learning? AI.
  • Coffee break? Probably AI-powered too.

MSPs must differentiate themselves by offering services that go beyond basic data analysis or pattern matching—capabilities that have existed for decades. Show customers what today’s AI can do that yesterday’s tools couldn’t.

And beware of AI-term overload

Remember the simple days of 2024, when AI was just… AI? Those days are gone. What used to be called “AI” is now “basic” or “reactive” AI. Now we have:

  • Generative AI (GenAI)
  • Agentic AI
  • Evolutionary AI
  • Multimodal AI
  • Even AI-enhanced VR

While each has its place—especially in specialized industries—most MSPs shouldn’t get overly caught up in terminology. The last thing 2026 needs is even more AI jargon. Leave that to the academics.

Focus on selling outcomes, not acronyms.

Avoiding AI commoditization

One of the biggest challenges in 2026 will be preventing AI from becoming just another commodity. Vendors will attempt to “differentiate” through new labels and categories, but customers won’t be fooled. Buyers want real differences, not marketing fluff.

One powerful way to differentiate? Vertical-specific AI services. This often involves enhancing large language models (LLMs) with focused language models (FLMs) tailored to a specific industry—healthcare, legal services, aerospace, and others. These layers help ensure AI output is more accurate, relevant, and trustworthy within that vertical.

For MSPs, this is a meaningful opportunity. High‑spending industries value precision. Offering AI services that speak their language—literally and figuratively—can open new revenue streams and provide clear competitive differentiation.

Wrapping it all up

So, there you have it—a little prediction, wrapped in seasonal paper. AI is evolving, users are pushing back, and MSPs who focus on trust, clarity, and meaningful outcomes will stand out. Here’s to a profitable, grounded, and genuinely innovative 2026!

Photo: Beautiful images creater / Shutterstock


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Clive Longbottom

Posted by Clive Longbottom

Clive Longbottom is a UK-based independent commentator on the impact of technology on organizations and was a co-founder and service director at Quocirca. He has also been an ITC industry analyst for more than 20 years.

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